UK Monthly Insolvency Statistics for September 2021

This article will retrospectively examine the corporate and personal insolvency statistics across the UK in September 2021.

UK Monthly Insolvency Statistics for September 2021

Corporate Insolvencies: England and Wales

Across England and Wales, there were 1,446 registered corporate insolvencies in September, a 7% increase from August and a dramatic increase of 56% when compared to September 2020. This was predominantly driven by Creditors’ Voluntary Liquidations (CVLs) now achieving pre-pandemic levels, with 1,328 companies entering this insolvency process during the month. CVLs are now at their highest rate since January 2019. Notably, this number is likely to increase in October due to the impact that the furlough scheme ending (30 September) will have on companies’ cash flow.

Alongside 1,328 CVLs, 81 administrations were registered in September, 26% lower than September last year and 49% lower than the year before that. Similarly, there were only 25 compulsory liquidations, which is 49% lower than September 2020 and 89% lower than September 2019. These figures are expected to increase, however, following the tapering of some of the Government’s business support measures.

Corporate Insolvencies: Scotland and Northern Ireland

In September 2021, there were a total of 70 company insolvencies registered in Scotland, 63% higher than in September 2020 but 8% lower than in September 2019. This was comprised of eight compulsory liquidations, 52 CVLs and 10 administrations. There were no CVAs or receivership appointments.

Historically, the volume of company insolvencies registered in Scotland has been largely driven by compulsory liquidations. However, since April 2020, there have been more than twice as many CVLs as compulsory liquidations.

Meanwhile, there were 11 registered company insolvencies in North Ireland, which is 10% higher than last year but 69% lower than September 2019. This consists of one administration, nine CVLs and one CVA. Once again, there were no compulsory liquidations or receivership appointments.

Personal Insolvencies

In September 2021, there were 2,150 Debt Relief Orders (DROs) in England and Wales, the highest figure seen since the start of the pandemic. This was 41% higher than in September 2020 but 12% lower than in September 2019.

The increased figure could be explained by the recent changes in the criteria for an individual to enter a DRO. These were introduced in June and may have started to have an impact. One of the most significant changes was the increase in the level of debt at which people can apply for a DRO, which went from £20,000 to £30,000. It is likely that the increase in the number of DROs registered in September 2021 was caused by this expansion of the eligibility criteria.

This DRO increase will have also impacted the bankruptcy numbers, which remain at historically low levels in England and Wales. What would formerly have been a bankruptcy now qualifies as a DRO. There were 614 bankruptcies in September 2021 – made up of 553 debtor applications and 61 creditor petitions – compared to an average of 1,400 in 2019.

In England and Wales, there were 6,853 Involuntary Voluntary Agreements (IVAs) registered per month in the three-month period ending September 2021. This was 48% higher than the same period in 2020 and 9% lower than the same period ending in 2019. The IVA numbers are beginning to level off now, as the market settles down from the volatile monthly movements that occurred during lockdowns.

In September 2021, there were 123 individual insolvencies in Northern Ireland. This was 14% lower than September 2020 and 61% lower than September 2019, consisting of 92 IVAs, 21 DROs and 10 bankruptcies.

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